Hearts have confirmed that they have agreed a fee with Rangers for midfielder Jason Holt.

The 22-year-old struggled for playing time at Tynecastle last year, spending the second half of the season out on loan with Sheffield United.

Having rejected a new contract at the Edinburgh club earlier this summer, Holt has been training with Rangers for a number of weeks and featured for the Scottish Championship outfit during their pre-season defeat to Burnley this evening.

The two clubs have now agreed a "development fee" for the Scotland Under-21 international, who is thought to be on the verge of agreeing a two-year deal at Ibrox.

"Heart of Midlothian Football Club can tonight confirm that a development fee has been agreed with Rangers for Jason Holt," read a statement on the official Hearts website.

"The Scotland U21 cap will now hold signing talks with the Ibrox side. Jason made 71 competitive appearances in a maroon shirt and scored seven goals, after making his first-team debut in 2011.

"The club thanks Jason for his time at Hearts and wishes him well in the future."

Holt could make his competitive debut for Rangers when they take on Hibernian in the first round of the Challenge Cup on Saturday.